Just like any business, some of these bakeries were built on weak foundations, while some started with solid foundations but veered off from the principles of successful bread baking and bakery management.
If you have read my Guide on How to start and run a Micro Bakery from home, baking 100 to 500 loaves daily, you would know that starting a commercial bread baking business and running it effectively for profit especially, is entirely different from baking for your home consumption.
I have seen bakeries that are turning profit of N1,000,000 (One million naira profit), GHc1600 or $5000 monthly collapsing like a pack of cards.
I have also seen bakeries that were on national distribution line fold up due to wrong business implementations. And I have seen small baking shop that started with just 3kg of flour move into producing 10bags daily and making real profit.
Be it in London, New York, Bombay, Mombasa, Kumasi, Accra or United Kingdom, Lagos, USA, Australia or Kenya, the principles of successful baking and bread baking business is the same.
Following are some of the reasons bakery business fails.
1. Not having baking knowledge: Don't start what you can't finish. Time is one thing you don't have. It is important that you call-in or have expert training on bread baking and bakery management. However, most of us use months and years trying to experiment with YouTube Videos and Running recipes and keep making mistakes instead of taking very successful shortcuts by engaging a Bakery Expert and consultant.
I have turned around most bakeries and built up new bakers who we train either at their location or ours or through social media wherever they may live.
Join my read baking online or offline class or take your home course. We have produced baker.
Complete Bread Baking Video, eBook and Costing course. Click here to access it
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WhatsApp me on +2349028854666 or WhatsApp me on +233551689453(Ghana WhatsApp)for physical class in Ghana or Nigeria
2. Wrong Personnel or Staff: In a recent bakery I went to revive, that have been closed for about 9monhs by the owner who lives abroad, the only last person left to guard the building as a security personnel was among those that I had to retrain in the art of bread baking and management for the bakery to take off again.
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He does not know the vision and mission of the company. He does not know that bread is food and must be handled with caution. He is dirty and does not concentrate on his core jobs. He is the wrong staff. And all sacked personnel were like him. You must be slow to hire and quick to fire. Don't get the wrong staff. I have recommended that he should be sacked. Don't get people who could steal your ingredients or does not understand the vision of the business.
3. No Business Plan: Most people start a business, but don't have a written document stating clearly where and how the business is going. A business plan must be written as an operational guide to your business destinations.
People work without direction or expectation when there is no written business plan. Create a business plan.
4. Expecting Quick Profit: While bread baking and bakery business is highly profitable, it is an illusion to start expecting huge profit in just days or weeks or months as you start with your baking.
There is a gestation period. There is a sowing period before you start reaping. Business work this way. Build a foundation for your business.
Complete Bread Baking Video, eBook and Costing course. Click here to access it
Join my next One week Bread baking online. Distance class
5. Wrong Equipments: Buying the wrong equipment will result in baking substandard bread loaves. Equipments such as Ovens, Pans and Packaging items must be standard. I have seen bakeries with very modern baking oven but with very substandard bread pans that brings dirts to the loaves. This dirt in the pans get transfered to the loaves and results in customers rejecting the bread. Little things matters.
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6. Expired, wrong or low ingredients: A client called me into their rescue when they started noticing their baked loaves was smelling like alcohol after a day of sending them to the market. It was due to wrong ingredient combinations. This gave a devastating blow to the business as customers keep returning the loaves.
Several clients invite me when they notice their baked bread goes stale and moulds after two days due to wrong ingredients combination or absence of some ingredients.
While some add expired ingredients, some remove ingredients that should make their bread or baked goods to be rich.
7. Wrong Scaling: I encountered a bakery where I had gone to save from collapsing. The manager of the bakery scales wrongly and does not know the scaling size and calculation of grams, kilogram and pounds. The bakery cuts and sell a bread meant for N240 or Ghc5at wholesale at N180 Ghc2.50. What a loss.
8. Key staff can't read and write: If you are running a bakery and you or your workers can't read or write, your business is doomed. They will take the wrong item or wrong measurement and add to your mixing and then you will certainly have inconsistencies in your productions.
Want to start your own profitable commercial Bread Baking and Bakery management business? Join our classes or grab your eBook and video ourse. Click below
Complete Bread Baking Video, eBook and Costing course. Click here to access it
Join my next One week Bread baking online. Distance class
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